Klarna, a fintech firm that has vocally been one of the early adopters of generative AI, announced on Tuesday significant cost savings and efficiencies brought by its use of AI technologies. According to the company, AI has enabled it to save approximately $10 million annually, particularly through innovations in marketing and image generation.
The company has achieved an 11% reduction in its sales and marketing budget for the first quarter, attributing 37% of these cost savings to AI implementations. This has coincided with an increase in the number of marketing campaigns it runs.
Klarna utilizes GenAI tools such as Midjourney, DALL-E, and Firefly to produce images, which has led to a $6 million decrease in image production costs. These tools allow for weekly updates of images on Klarna’s app and website to reflect key retail events like Valentine’s Day, Mother’s Day, and summer sales.
“Traditionally, it would have been very costly to cater to these occasions with bespoke imagery, but with AI that is no longer an issue,” said David Sandström, Klarna’s Chief Marketing Officer. “Essentially, we have removed the need for stock imagery.”
In the first three months of 2024 alone, over 1,000 images were generated using GenAI, reducing the image development cycle from six weeks to just seven days. Additionally, Klarna has saved a further $4 million by reducing expenditures on external marketing suppliers, including those used for translation, production, and social media agencies.
Moreover, Klarna has enhanced its customer service through a partnership with OpenAI, integrating an AI assistant that performs tasks equivalent to 700 full-time agents. This collaboration underscores Klarna’s commitment to leveraging AI technology to streamline operations and reduce costs while enhancing service delivery and marketing effectiveness
